I just read a great piece from Mauldin Economics, Outside the Box, entitled, “The Blip”. I think that everyone should read it. If you do not subscribe to his free newsletter you can do so at http://www.mauldineconomics.com/subscribe.

I posted a comment about the article and the entire text of that comment is as follows:

Postings on this Blog are supposed to be about trading securities – and short term trading at that, so I suppose I should apologize for a brief comment about US Politics – but I can’t help but wonder Is just a coincidence that Barack’s (Obama) Speech can be shortened to “BS”? Sometimes, when I just […]

While relaxing during my long week-end mini-vacation, I mused on the individual trader versus the market. It is truly a David versus Goliath matchup. As small guys, we are outgunned in just about every aspect. We do not trade in sufficient quantity to move a market and we do not have the research and […]

Could not resist using that heading – I just got back from a long weekend RV trip and part of the entertainment was the festive “National Day of the Cowboy” celebration. As a kid growing up in Alabama, I loved the old Gene Autry cowboy movies. That may be why I got to Texas as […]

Bollinger Bands are a big part of the TBL method of trading. For those not familiar with Bollinger Bands, they are simply three moving average lines plotted over the price bars. The three lines represent an exponential moving average, and two additional plots of the same moving average – one placed two standard deviations above, […]

I have often been asked about the blue and yellow lines plotted over the price bars on my trading charts. Those two lines, combined, make up my proprietary technical indicator named “Relative Momentum Indicator” (RMI). The RMI is the one thing that truly sets TBL apart from any other trading method.

When short term trading I try to avoid hard stops but sometimes they are necessary. Today, for me, was one of those days. So I thought it would be a good time to discuss how I use hard stops – when I must use them.

One of our favorite technical indicators is the Stochastic oscillator – generally used as an overbought/oversold indicator. I am not going to bore you with the details of the formula because it is rather complex and there are various parameters whose values can be changed to affect the eventual results. It seems that everyone has […]